RenTech Shuts London Office, Stops Selling Funds In Europe

Jul 24 2014 | 10:32am ET

New European Union hedge-fund regulations have cost that continent’s investors access to Renaissance Technologies.

The quantitative hedge fund has closed its London office and stopped selling its two largest funds in Europe, Reuters reports. The EU’s new Alternative Investment Fund Managers Directive, which imposes strict new reporting and fundraising requirements on hedge funds foreign and domestic, came into effect on Tuesday.

RenTech’s London office dealt primarily with marketing its wares in Europe. It employed four people.

Retrenchment from Europe comes as RenTech finds itself under fire in the U.S. for its use of controversial basket options to skirt more than $6 billion in taxes. The firm’s co-CEO defend its use of the products on Tuesday during a Congressional hearing.

The turmoil has not stopped the Renaissance Institutional Equities and Institutional Futures funds—the two funds no longer available to Europeans—from posting positive returns this year. The funds are up 2.5% and 2.2%, respectively, through July 18, besting most hedge funds but lagging the broader markets. The two funds manage a combined $25 billion.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...